Q3 operating income guidance: $20 million-$170
million which is well below what the street was expecting.
(JP Morgan expected $275-$425 million.)

Head count continues to explode, with Amazon adding 5,300 new people in the quarter.

Citi analyst
Mark Mahaney is baffled by the weak operating income, saying in a
note: "Op Inc. Guide Is A Key Concern, As It Appears To Be Every
Quarter. Possible drivers – Tablet launch expenses? Ramped up
distribution centers? Expanded Web Services centers? Rockets to
the moon? All of the above?... "

His take away on the quarter: "Our First Pass Take Is
Incrementally Positive — 44% organic revenue growth is the
fastest since 2001 (déjà-Bubble), with Kindle
almost certainly a key factor, along with accelerating momentum
into Consumer Staples,
Apparel, and Web Services. AMZN is dramatically taking share in
Online Retail. The pause here is that the company is also
aggressively investing at the same time."

Disclosure: Jeff Bezos is an investor in Business Insider through his
personal investment company Bezos Expeditions.